17

HOUSE BILL.

If at any time it shall appear to the Federal Reserve Board that a banking association or trust company organized under the laws of any State or of the United States has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board, it shall be within the power of the said board to require such banking association or trust company to surrender its stock in the Federal reserve bank in which it holds stock upon receiving from such Federal reserve bank the cashpaid subscriptions to the said stock

S D-63-2-vol 25-4

OWEN AMENDMENT.

provisions of this section shall, in addition to the regulations and restrictions hereinbefore provided, be required to conform to the provisions of law imposed on the national banks respecting the limitation of liability which may be incurred by any person, firm, or corporation to such banks, the prohibition against making purchase of or loans on stock of such banks, and the withdrawal or impairment of capital, or the payment of unearned dividends, and to such rules and regulations as tae Federal Reserve Board may, in pursuance thereof, prescribe.

Such banks, and the officers, agents, and employees thereof, shall also be subject to the provisions of and to the penalties prescribed by sections fifty-one hundred and ninety-eight, fifty-two hundred, fiftytwo hundred and one, and fifty-two hundred and eight, and fifty

two hundred and nine of 31 the Revised Statutes. The

member banks shall also be

required to make reports of the conditions and of the payments of dividends to the comptroller, as provided in sections fifty-two hundred and eleven and fifty-two hundred and twelve of the Revised Statutes, and shall be subject to the penalties prescribed by section fifty-two hundred and thirteen for the failure to make such report.

If at any time it shall appear to the Federal Reserve Board that a banking association or trust company organized under the laws of any State or of the United States and having become a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board, it shall be within the power of the said board, after hearing, to require such banking association or trust company to surrender its stock in the Federal reserve bank; in which it holds steek upon receiving from such surrender the Federal reserve bank shall pay the cash-paid subscriptions to the said stock in cur rent funds with interest at the rate of one-half of one per centum per month, computed from the last dividend, if earned, not to exceed the book value thereof, less any liability to said Federal reserve bank, except the subscription liability not previously called, which shall be canceled,

HITCHCOCK AMENDMENT.

quired to make the same reports and be subject to the same examination and supervision as national banking associations and subject also to the reserve requirements of this Act.

If at any time it shall appear to the Federal Reserve Board that a banking association or trust-company-organized under the laws of any State or of the United States member bank has failed to comply with the provisions of this section Act or the regulations of the Federal Reserve Board, it shall be within the power of the said board to require such-banking association or trust company to surrender its stock-in the Federal reserve bank in which it holds stock upon receiving from such Federal reserve bank the cash paid subscriptions to the said stockin-current funds, and said Federal reserve bank shall upon notice from the Federal Reserve Board be re quired to suspend said banking as sociation or trust company from further privileges of membership, and shall within thirty days of such notice cancel and retire its stock and make payment therefor in the manner herein provided, after due

HOUSE BILL.

in current funds, and said Federal reserve bank shall upon notice from the Federal Reserve Board be required to suspend said banking association or trust company from further privileges of membership, and shall within thirty days of such notice cancel and retire its stock and make payment therefor in the manner herein provided.

FEDERAL RESERVE BOARD.

and said Federal reserve bank hearing, to suspend or expel the said shall, upon notice from the bank from membership. Federal Reserve Board, be required to suspend said banking association or trust company from further privileges of membership, and shall within thirty days of such notice cancel and retire its stock and make payment therefor in the manner herein provided.

32

The

The

Federal Reserve Board may restore membership upon due proof of compliance with the condition imposed by this Act.

FEDERAL RESERVE BOARD.

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SEC. 11. That there shall be created a Federal Reserve Board, which shall consist of seven members, including the Secretary of the Treasury, the Secretary of Agriculture, and the Comptroller of the Currency, who shall be members ex officio, and four members appointed by the President of the United States, by and with the advice and consent of the Senate. In selecting the four appointive members of the Federal Reserve Board, not more than one of whom shall be selected from any one Federal reserve district, the President shall have due regard to a fair representation of different geographical divisions of the country. The four members of the Federal Reserve Board appointed by the President and confirmed as aforesaid shall devote their entire time to the business of the Federal Reserve Board and shall each receive an annual salary of $10,000, together with an allowance for actual necessary traveling expenses, and the Comptroller of the Currency, as ex officio member of said Federal Reserve Board, shall, in addition to the salary now paid him as comptroller, receive the sum of $5,000 annually for his services as a member of said board. Of the four members thus appointed by the President not more

SEC. 10. That there shall be ereated a A Federal Reserve Board, is hereby created which shall consist of seven members, including the Secretary of the Treasury, the See retary of Agriculture, and the Comptroller of the Curreney, who shall be members a member ex officio, and four six members appointed by the President of the United States, by and with the advice and consent of the Senate. In selecting the four six appointive members of the Federal Reserve Board, not more than one of whom shall be selected from any one Federal reserve district, the President shall have due regard to a fair representation of the different geographical divisions of the country. The four six members of the Federal Reserve Board appointed by the President and confirmed as aforesaid shall devote their entire time to the business of the Federal Reserve Board and shall each receive an annual salary of $10,000, together with an allowance for actual necessary traveling expenses, and the Comptroller of the Currency, as ex

33

efficio member of said Fed eral Reserve Board, shall, in addition to the salary now paid him as Comptroller, receive the sum of $5,000 annually for his services as a member of said board

The Hitchcock amendment proposes to strike out all of section 11 of the House bill and insert the following:

Sec. 11. That the President of the United States shall appoint, by and with the advice and consent of the Senate, a Federal Reserve Board consisting of eight members, in addition to whom the Secretary of the Treasury shall be an ex officio member. Of the eight members appointed in the first instance, the President shall appoint one for a term of one year, one for a term of two years, one for a term of three years, one for a term of four years, one for a term of five years, one for a term of six years, one for a term of seven years, and one for a term of eight years, and thereafter all appointments shall be made for a term of eight years.

Not less than one nor more than three of said members shall be appointed from any one Federal reserve district. Appointments to fill

33

vacancies in the board shall be for the unexpired term and may be made by the President when the Senate is not in session, which appointments shall expire at the end of the next session. In selecting members of the reserve board consideration shall be given to experience in commerce and banking. The eight members of the Federal Reserve Board thus appointed by the President shall devote their entire time to the work and duties of the board and shall not while in office be officers, directors, or employees of any bank or trust company,

HOUSE BILL.

OWEN AMENDMENT.

and they shall be ineligible during the time they are in office and for two years thereafter to hold any appointve office or employment under the United States or in the District of Columbia or any Territory of the United States, or of any member bank of a reserve bank.

Of the four

six members thus appointed by the President not more than two shall be of the same policial party, and at least one of whom two shall be a person persons experienced in banking or finance. One shall be designated by the President to serve for two one, one for four two, one for six three, and one for eight years four, one for five, and one for six years, respectively, and thereafter each member so appointed shall serve for a term of eight six years unless sooner removed for cause by the President. Of the four six persons thus appointed, one shall be designated by the President as manager governor and one as vice mana ger governor of the Federal Reserve Board. The manager governor of the Federal Reserve Board, subject to the its supervision of the Seeretary of the Treasury and Federal Reserve Board, shall be the active executive officer of the Federal Re serve Board.

The Secretary of the Treasury may assign offices in the Department of the Treasury for the use of the Federal Reserve Board. Each member of the Federal Reserve Board shall within fifteen days after notice of appointment make and subscribe to the oath of office.

HITCHCOCK AMENDMENT.

nor hold stock in any such institution, and they shall each receive a salary of $12,000 per year, payable monthly out of the Treasury of the United States upon the order or warrant of the Secretary of the Treasury. The President shall designate, other than the Secretary of the Treasury, one member of said board as governor thereof, and one member as vice governor thereof who shall act in place of the governor during his disability or absence. The governor shall be the active executive and presiding officer of the board.